Since the release of Shenzhen Bailout Measures for Market Entities on Coping with COVID-19 Pandemic (Referred to as “several measures”), we have collected a hundred questions and come up with the Q&As. Take a look!
A hundred Q&As  Phase One
Expand the reduction scope of “six taxes and two fees.” Reduce tax by 50% including resource tax, urban maintenance and construction tax, property tax, urban land use tax, stamp duty (excluding securities transaction stamp duty), cultivated land occupation tax and education fees, local education fees. The scope of applicable entities is extended from small-scaled VAT taxpayers to small micro-profit companies and individual and commercial households.
1.What is the execution time limit of this measure?
January 1, 2022 to December 31, 2024.
2.Which market entities could apply for “six taxes and two fees” reduction?
Individual industrial and commercial households, small micro-profit enterprises, small-scaled value-added taxpayers can apply. For special cases, please refer to the Announcement of the State Taxation Administration on Further Implementing the “Six Taxes and Two Fees” Reduction Policy for Micro and Small Enterprises (State Administration of Taxation Announcement No. 3 of 2022)（Hereinafter referred to as “the announcement”）.
3.How to apply for the “six taxes and two fees” reduction?
You can apply for it through the tax service halls and via e-tax bureaus.
4.How to determine whether small enterprises with low margins are entitled to “six taxes and two fee” exemption?
According to the relevant regulations of enterprise income tax, taxpayers can only determine whether they belong to small enterprises with low margins after annual remittance. According to the Announcement, the determination is based on results of the annual remittance of enterprise income tax (hereinafter referred to as the remittance). If an enterprise is determined as a small enterprise with low margins after the remittance, it can enjoy the "six taxes and two fees" exemptions from July 1 of the year of remittance to June 30 of the following year. From January 1 to June 30 of 2022, the taxpayer will determine whether it is entitled to the "six taxes and two fees" exemptions according to the result of the remittance for 2020 calculated in 2021. From January 1 to June 30, 2022, taxpayers can determine whether they can enjoy the "six taxes and two fees" exemptions according to the results of the 2020 annual remittance in 2021.
5.Do I need to submit information to the tax authorities when declaring the "six taxes and two fees" exemptions?
In order to implement the requirements of reform to delegate powers, improve regulation, and improve services and optimizing the business environment of taxation, and to reduce the burden of taxpayers in submitting information, the Announcement provides that tax exemptions and exemptions are self-reported and do not require additional information.
6.What if taxpayers didn’t enjoy the tax reduction benefits in time?
In order to ensure that taxpayers fully enjoy the preferential treatment, the Announcement stipulates that taxpayers, who meet the conditions but haven’t applied for preferential tax reduction in time, can apply for tax reduction in the subsequent taxation period or apply for a tax refund, in accordance with the law. For those who apply for reduction in the subsequent taxation period, the system will automatically offset the taxable fees of the same tax type during the taxpayers’ next tax filing.
7.What can I do if I have questions about this policy?
You can consult Shenzhen Tax Service at 12366, or Shenzhen Finance Bureau at 83933115.
Reduction of property taxes and urban land use tax. Due to the impacts of the pandemic, for taxpayers who have difficulties in paying property taxes and urban land use taxes, the tax fees can be deducted (within Shenzhen) in accordance with national policies.
8.How long will the policy be valid?
You shall apply for tax reduction during the 2022 filing period of property taxes and urban land use taxes.
9.Who are eligible for the application of the deduction of property taxes and urban land use taxes?
Taxpayers who have difficulties in paying property taxes and urban land use taxes due to the pandemic.
10.How do I apply for the deduction of property taxes and urban land use taxes?
You can apply through the Tax Service Hall or e-Tax Service.
11.What can I do if I have other questions about this policy?
You can consult Shenzhen Tax Service at 12366, or Shenzhen Finance Bureau at 83933115.